1. THE RUSSIAN RUBLE The Bank of Russia Market Operations Department

2. Toward more flexible exchange rate (1) Source: IMF (2009)

3. Toward more flexible exchange rate (2) Source: IMF (2009)

4. Results of different exchange rate regimes Source: IMF (2009) Summary: 1)for inflation float exchange rate is the best choice 2)for growth intermediate regime maybe the best choice

5. REER strengthening of commodity-countries (from january 2009)

6. Still huge ruble dependence on oil price

7. Bicurrency basket floating bands

8. Volatility of bilateral exchange rates (day-to-day basis, %) maximum volatility for «row» currency across «column» currencies minimum volatility for «row» currency across «column» currencies

9. CBR foreign currency interventions

10. Factors of inflation in Russia u Significant decrease of households demand and investments is the main factor of disinflation now u The effect of exchange rate pass-through after ruble depreciation has been fully translated into domestic prices. Current appreciation of ruble is a factor of disinflation for a short-term perspective u Monetary policy easing will determine growing inflation risks in 2nd half 2010

11. CPI and monetary aggregate dynamics

12. International money market interest rates

13. CBR interest rate band